Morning Briefing: Yellen in focus as markets weigh rate hike

by Steve Randall05 Nov 2015

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Morning Briefing: Yellen in focus as markets weigh rate hike

Yellen in focus as markets weigh rate hike
World markets are reacting to Fed chair Janet Yellen’s words at Washington’s Financial Services Committee in which she said that an interest rate rise in December is a “live” possibility.

North American stocks closed lower Wednesday and oil and gold prices and currency exchange rates have all been adjusting as the potential rate rise is weighed.

Asian markets are mostly lower with the exception on Shanghai and Tokyo, the latter boosted by a more favourable exchange rate for the yen. Sydney’s losses were driven by weakness in Australia’s banking sector.

European markets are mixed with regional earnings in focus and VW shares expected to react to a downgrade of the company by ratings agency Moody’s during the previous session.

Latest

1 month ago

1 year ago

North America (previous session)

US Dow Jones

17,867.58 (-0.28 per cent)

+6.50 per cent

+2.19 per cent

TSX Composite

13,661.82 (-0.35 per cent)

+0.81 per cent

-6.09 per cent

Europe (at 6.10am ET)

UK FTSE

6,391.56 (-0.33 per cent)

+1.47 per cent

-2.26 per cent

German DAX

10,935.16 (+0.83 per cent)

+11.42 per cent

+17.39 per cent

Asia (at close)

China CSI 300

3,705.97 (+2.13 per cent)

+15.70 per cent

+48.03 per cent

Japan Nikkei

19,116.41 (+1.00 per cent)

+6.17 per cent

+12.87 per cent

Other Data (at 6.05am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

48.77
(+0.39 per cent)

46.39
(+0.15 per cent)

1107.30
(+0.10 per cent)

U$0.7596

Aus. Dollar

U$0.7137

Carney not expected to surprise on ‘Super Thursday’
The Bank of England governor Mark Carney is expected to announce a hold on UK interest rates Thursday. The former BoC boss is also announcing the UK central bank’s latest inflation forecast. There are not set to be any surprises according to Reuters’ analysts who are betting on February 2016 as the most likely first rise in UK interest rates.

Chinese property still hot for investors
Western investors are still putting their cash into Chinese property, despite the stagnation in the sector. Ivanhoe Cambridge, part of Canada’s Caisse de depot et placement du Quebec, is among those seeking further investment opportunities in Chinese property. CNBC reports that as China’s economy grows the mid-to-long term picture for investors is positive.